The U.S. identity theft protection company LifeLock is enhancing its product offering with the $42.6 million cash acquisition of the mobile wallet provider Lemon.

Lemon was set up in 2011 by Wences Casares. The Lemon Wallet app allowed consumers to store a digital copy of their personal wallet contents on their smart mobile device. The free app, which was downloaded 3.6 million times, allowed consumers to store items such as credit cards, identification, ATM, insurance and loyalty cards on their mobile devices and use them for mobile transactions.

Following the acquisition, the Lemon Wallet has been renamed the LifeLock Wallet, which is available for both iOS and Android devices. LifeLock said it will add one-touch access through the LifeLock Wallet to LifeLock's subscription-based identity protection services.

Other free services on the LifeLock Wallet include a credit card cancellation service in case of physical wallet loss or theft, credit card balance updates, spending by category and credit card purchase tracking for fraud monitoring. These services were available on the Lemon Wallet Plus for $4.99 per month or $39.99 per year.

Additionally, the paid LifeLock subscription will provide identity fraud alerts on smart devices, use of LifeLock's Not Me technology for countering fraudulent activity, up to $1 million in professional recovery assistance in the event of identity theft, access to a help desk, and access to monthly credit scores with LifeLock Ultimate membership.

The acquisition adds a mobile platform to LifeLock's identity protection services for consumers, the company said. "Lemon gives us powerful new ways to engage with current and future members," LifeLock CEO Todd Davis said in a statement.

"Joining forces with LifeLock provides something completely new in the market: a digital wallet combined with a way to help protect it," Casares said.

In addition to the cash payment, LifeLock has agreed to issue equity that will vest over the next three years.

Learn more about mobile/digital wallets.